Bill Text: IL SB1534 | 2021-2022 | 102nd General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Provides that the Act may be referred to as the Patient and Provider Protection Act. Creates the Public Higher Education Emergency Health Act. Requires each public institution of higher education to make emergency contraception available for purchase through at least one vending machine located on each campus. Amends the Illinois Insurance Code. Requires abortion care coverage to include medications prescribed for the purpose of producing an abortion. Requires health insurance to provide coverage for all abortifacients, gender-affirming health care medication, human immunodeficiency virus pre-exposure prophylaxis and post-exposure prophylaxis drugs. Amends the Birth Center Licensing Act. Changes the definition of "birth center". Defines "reproductive health care services". Amends the Pharmacy Practice Act. Allows a pharmacist to dispense hormonal contraceptives. Amends the Criminal Identification Act. Provides that nothing shall be construed to permit or require the reporting of lawful health care activity. Amends the Wrongful Death Act. Prohibits a cause of action against any person (rather than only a physician or a medical institution) for the wrongful death of a fetus caused by an abortion where the abortion was permitted by law and the requisite consent was lawfully given. Amends the Illinois Parentage Act of 2015. Provides that the terms of the most recent informed consent govern if the intended parent or parents no longer wish to use any remaining cryopreserved fertilized ovum. Amends the Reproductive Health Act. Includes assisted reproduction in the definition of "reproductive health care". Requires a lawsuit brought under the Act to be commenced within 2 years after the cause of action was discovered. Allows an advanced practice registered nurse or physician assistant to perform aspiration abortion procedures. Amends the Medical Practice Act of 1987, the Nurse Practice Act, the Physician Assistant Practice Act of 1987, the Clinical Social Work and Social Work Practice Act, the Pharmacy Practice Act, the Genetic Counselor Licensing Act, the Clinical Psychologist Licensing Act, the Marriage and Family Therapy Licensing Act, the Licensed Certified Professional Midwife Practice Act, the Professional Counselor and Clinical Professional Counselor Licensing and Practice Act, and the Registered Surgical Assistant and Registered Surgical Technologist Title Protection Act. Provides that the Department of Financial and Professional Regulation shall not take action against a license or permit issued under those Acts based solely upon the license of the person being revoked or the person otherwise being disciplined by any other state or territory for actions related to any health care, medical service, or procedure if the revocation or disciplinary action was based solely on a violation of the other state's law prohibiting such action performed in any state for any person and such conduct is permissible under State law. Amends the Medical Practice Act of 1987, the Nurse Practice Act, and the Physician Assistant Practice Act. Allows the Department of Financial and Professional Regulation to issue temporary permits for reproductive health care to a person who is licensed to practice under Acts equivalent to those in another state. Creates the Lawful Health Care Activity Act. Provides that the laws of the State govern in any case or controversy heard in the State related to lawful health care activity. Amends the Uniform Interstate Depositions and Discovery Act. Contains provisions regarding unenforceable foreign subpoenas. Amends the Uniform Act to Secure the Attendance of Witnesses from Within or Without a State in Criminal Proceedings. Restricts a subpoena, summons, or order from being issued for a witness to provide information or testimony in relation to any proceeding if the charge is based on conduct that involves lawful health care activity that is not unlawful in the State. Amends the Uniform Criminal Extradition Act. Provides that the Governor shall not surrender a person if the charge is based on conduct that involves seeking, providing, receiving, assisting in seeking, providing, or receiving, providing material support for, or traveling to obtain lawful health care that is not unlawful under the laws of the State. Amends the Counties Code, the Medical Practice Act of 1987, and the Consent by Minors to Health Care Services Act to remove references to the Parental Notice of Abortion Act of 1983 and the Parental Notice of Abortion Act of 1995. Makes other and conforming changes to various Acts. Effective immediately, except that Article 2 is effective on January 1, 2024.

Spectrum: Partisan Bill (Democrat 43-0)

Status: (Engrossed - Dead) 2023-01-06 - Placed on Calendar Order of Concurrence House Amendment(s) 2, 3, 4, 1 - January 8, 2023 [SB1534 Detail]

Download: Illinois-2021-SB1534-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB1534 Introduced 2/26/2021, by Sen. Antonio Muñoz SYNOPSIS AS INTRODUCED:
See Index
Amends the Illinois Credit Union Act. In provisions concerning service to the economically disadvantaged, provides that members of a targeted population may be admitted to membership in a credit union. Provides that notice of a meeting of credit union members may be posted on the credit union's website. Provides that unless expressly prohibited by the articles of incorporation or bylaws, the board of directors may provide by resolution that members may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology, subject to specified conditions. Sets forth provisions concerning appointment of associate directors. In provisions concerning compensation of officials, provides that if the Department of Financial and Professional Regulation determines the payment of director or committee member compensation creates a safety and soundness issue for a credit union, the Department may take an enforcement action to reduce or suspend the compensation. Provides that the board of directors shall hold regular meetings at least once each month; however, upon approval of an amendment to the bylaws of the credit union, the board of directors may hold meetings less frequently than once each month but at least once each quarter. Provides that a credit union shall select an annual reporting period, complete an external audit report, agreed-upon procedures report, and internal audit report, and deliver copies to the Secretary of Financial and Professional Regulation no later than 120 days after the end of the annual reporting period. In provisions concerning loan programs and provisions concerning investment of funds, allows a credit union to make loans to or invest in credit union service organizations in a total amount not exceeding the greater of 6% (rather than 3%) of specified amounts. Provides that a surviving credit union may identify the merging credit union as a division, branch, unit, or other descriptive reference. Provides that the network credit union board of directors shall require each advisory board member to sign a confidentiality or non-disclosure agreement. Defines "target market". Makes other changes.
LRB102 10353 BMS 15680 b
A BILL FOR
SB1534 LRB102 10353 BMS 15680 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Credit Union Act is amended by
changing Sections 16.1, 19, 23, 29, 34, 51, 57, 59, and 64.7
and by adding Section 20.5 as follows:
(205 ILCS 305/16.1)
Sec. 16.1. Service to the economically disadvantaged.
(a) Persons who reside in investment areas or persons who
are members of a targeted population, as defined in the
Community Development Banking and Financial Institutions Act
of 1994 (12 U.S.C. 4701 et seq. 4702) and regulations issued
thereunder identified by the U.S. Department of the Treasury
(12 CFR 1805.104 et seq.), may be admitted to membership in a
credit union that determines to serve serves the investment
area or members of the targeted population, or both by
maintaining a facility in the area. The credit union may serve
the investment area or members of the targeted population, or
both, directly or indirectly or through borrowers or investees
that respectively serve the investment area or the members of
the targeted population, or both.
(b) As used in For purposes of this Section, "target
market" means an investment area or a targeted population, or

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both, as defined under the U.S. Department of the Treasury
regulations identified in subsection (a). a "facility" means a
credit union owned branch, a shared branch, an office operated
on a regularly scheduled weekly basis, or a credit union owned
electronic facility that meets, at a minimum, the requirements
of accepting shares for members' accounts, accepting loan
applications and disbursing loans, but does not include an
ATM.
(c) (b) Credit unions desiring to serve the economically
disadvantaged in accordance with this Section shall do so
pursuant to a written business plan that shall document the
fact that the target market area meets the criteria of this
Section, identify the credit and depository needs of the
target market area, identify the services to be delivered, and
describe the manner in which the services will be delivered.
The credit union shall regularly review the business plan to
determine whether the target market area is being adequately
served and shall provide to the Secretary periodic service
status reports that describe how the needs of the target
market area are being met.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/19) (from Ch. 17, par. 4420)
Sec. 19. Meeting of members.
(1)(a) The annual meeting shall be held each year during
the months of January, February or March or such other month as

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may be approved by the Department. The meeting shall be held at
the time, place and in the manner set forth in the bylaws. Any
special meetings of the members of the credit union shall be
held at the time, place and in the manner set forth in the
bylaws. Unless otherwise set forth in this Act, quorum
requirements for meetings of members shall be established by a
credit union in its bylaws. Notice of all meetings must be
given by the secretary of the credit union at least 7 days
before the date of such meeting, either by handing a written or
printed notice to each member of the credit union, by mailing
the notice to the member at his address as listed on the books
and records of the credit union, or by posting a notice of the
meeting in three conspicuous places, including the office of
the credit union, by posting the notice of the meeting on the
credit union's website, or by disclosing the notice of the
meeting in membership newsletters or account statements.
(b) Unless expressly prohibited by the articles of
incorporation or bylaws and subject to applicable requirements
of this Act, the board of directors may provide by resolution
that members may attend, participate in, act in, and vote at
any annual meeting or special meeting through the use of a
conference telephone or interactive technology, including, but
not limited to, electronic transmission, internet usage, or
remote communication, by means of which all persons
participating in the meeting can communicate with each other.
Participation through the use of a conference telephone or

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interactive technology shall constitute attendance, presence,
and representation in person at the annual meeting or special
meeting of the person or persons so participating and count
towards the quorum required to conduct business at the
meeting. The following conditions shall apply to any virtual
meeting of the members:
(i) the credit union must internally possess or retain
the technological capacity to facilitate virtual meeting
attendance, participation, communication, and voting; and
(ii) the members must receive notice of the use of a
virtual meeting format and appropriate instructions for
joining, participating, and voting during the virtual
meeting at least 7 days before the virtual meeting.
(2) On all questions and at all elections, except election
of directors, each member has one vote regardless of the
number of his shares. There shall be no voting by proxy except
on the election of directors, proposals for merger or
voluntary dissolution. Members may vote on questions,
including, without limitation, the approval of mergers and
voluntary dissolutions under this Act, and in elections by
secure electronic record if approved by the board of
directors. All voting on the election of directors shall be by
ballot, but when there is no contest, written or electronic
ballots need not be cast. The record date to be used for the
purpose of determining which members are entitled to notice of
or to vote at any meeting of members, may be fixed in advance

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by the directors on a date not more than 90 days nor less than
10 days prior to the date of the meeting. If no record date is
fixed by the directors, the first day on which notice of the
meeting is given, mailed or posted is the record date.
(3) Regardless of the number of shares owned by a society,
association, club, partnership, other credit union or
corporation, having membership in the credit union, it shall
be entitled to only one vote and it may be represented and have
its vote cast by its designated agent acting on its behalf
pursuant to a resolution adopted by the organization's board
of directors or similar governing authority; provided that the
credit union shall obtain a certified copy of such resolution
before such vote may be cast.
(4) A member may revoke a proxy by delivery to the credit
union of a written statement to that effect, by execution of a
subsequently dated proxy, by execution of a secure electronic
record, or by attendance at a meeting and voting in person.
(5) As used in this Section, "electronic" and "electronic
record" have the meanings ascribed to those terms in the
Electronic Commerce Security Act. As used in this Section,
"secured electronic record" means an electronic record that
meets the criteria set forth in Section 10-105 of the
Electronic Commerce Security Act.
(Source: P.A. 100-361, eff. 8-25-17.)
(205 ILCS 305/20.5 new)

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Sec. 20.5. Appointment of associate directors.
(a) The board of directors of a credit union may, in its
discretion, appoint one or more associate directors to serve
in an advisory capacity. The board shall prescribe the duties
of an associate director and the manner in which associate
directors are appointed and removed. The board shall not
delegate to associate directors any of the duties or
responsibilities prescribed by this Act or other applicable
law to be performed by directors duly elected by their
members. An associate director shall not be deemed or
considered to be a director for any purpose under this Act.
(b) Before appointing an associate director, the board
shall confirm that the person meets all of the requirements to
serve as a director, including, without limitation, a working
familiarity with the financial and accounting practices of the
credit union as set forth in subsection (c) of Section 30.
(c) An associate director may participate in meetings of
the board but may not vote or otherwise act as a director. With
respect to any issue that comes before the board for
deliberation, the board may request that all associate
directors excuse themselves from the meeting of the board and
the associate directors shall immediately comply with the
request.
(d) The board shall require each associate director to
sign a confidentiality or non-disclosure agreement to ensure
that information concerning the credit union remains

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confidential.
(205 ILCS 305/23) (from Ch. 17, par. 4424)
Sec. 23. Compensation of officials.
(1) Directors and committee members may receive reasonable
compensation for their service as such, the amount of which
shall be set by the board of directors, in accordance with
written policies and procedures established by the board of
directors. If the Department determines the payment of
director or committee member compensation, or both, creates a
safety and soundness issue for a credit union, the Department
shall utilize the standards set forth in 38 Ill. Adm. Code
190.25 and supplemental guidelines to address and resolve the
issue. An enforcement action taken pursuant to 38 Ill. Adm.
Code 190.25 and guidelines and specified by the Act shall be
used to reduce or suspend the compensation paid to the
directors and committee members. The Department shall, by
rule, establish maximum rates of reasonable compensation that
are generally applicable to credit unions considering factors
the Department may establish from time to time, including, but
not limited to, total assets, nonprofit cooperative structure,
and the best interests of members. "Compensation" as used in
this subsection (1) refers to remuneration expense to the
credit union for services provided by a director or committee
member in his or her capacity as director or committee member.
The remuneration expense is in the form of monetary payments

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and shall be disclosed on an annual basis to the membership in
the financial statement that is part of the annual membership
meeting materials. The disclosure shall contain: (i) the
amount paid to each director and (ii) the amount paid to the
directors as a group. "Compensation" does not include any of
the expenses described in subsections (2) and (3) of this
Section.
(2) The credit union may incur the expense of providing
reasonable life, health, accident, and similar insurance
protection benefits for directors and committee members.
(3) Directors, committee members and employees, while on
official business of the credit union, may be reimbursed for
reasonable and necessary expenses. Alternatively, the credit
union may make direct payment to a third party for such
business expenses. Reasonable and necessary expenses may
include the payment of travel costs for the foregoing
officials and one guest per official. All payment of costs
shall be made in accordance with written policies and
procedures established by the board of directors.
(4) The board of directors may establish compensation for
officers of the credit union.
(Source: P.A. 101-567, eff. 8-23-19.)
(205 ILCS 305/29) (from Ch. 17, par. 4430)
Sec. 29. Meetings of directors.
(1) The board of directors shall meet as often as

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necessary as prescribed in the bylaws. The board of directors
shall hold regular meetings at least once each month; however,
upon approval of an amendment to the bylaws of the credit
union, the board of directors may hold meetings less
frequently than once each month but at least once each
quarter. The board of directors may meet quarterly without the
prior approval of the Secretary if an executive committee has
been appointed by the board of directors and the executive
committee meets in each month that the board of directors does
not meet. A special meeting of the board of directors may be
held as provided in the bylaws. The board of directors and the
executive committee shall meet as often as necessary, but one
body must meet at least monthly and the other at least
quarterly, as prescribed in the bylaws. Unless a greater
number is required by the bylaws, a majority of the whole board
of directors shall constitute a quorum. The act of a majority
of the directors present at a meeting at which a quorum is
present shall be the act of the board of directors unless the
act of a greater number is required by this Act, the credit
union's articles of incorporation or the bylaws.
(2) Unless specifically prohibited by the articles of
incorporation or bylaws, directors and committee members may
participate in and act at any meeting of the board or committee
through the use of a conference telephone or other
communications equipment by means of which all persons
participating in the meeting can communicate with each other.

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Participation in the meeting shall constitute attendance and
presence in person at the meeting of the person or persons so
participating.
(3) Unless specifically prohibited by the articles of
incorporation or bylaws, any action required by this Act to be
taken at a meeting of the board of directors or a committee and
any other action that may be taken at a meeting of the board of
directors or a committee may be taken without a meeting if a
consent in writing setting forth the action taken is signed by
all the directors entitled to vote with respect to the subject
matter thereof, or by all members of the committee, as the case
may be. The consent shall be evidenced by one or more written
approvals, each of which sets forth the action taken and bears
the signatures of one or more directors or committee members.
All the approvals evidencing the consent shall be delivered to
the secretary to be filed in the corporate records of the
credit union. The action taken shall be effective when all the
directors or committee members have approved the consent
unless the consent specifies a different effective date. A
consent signed by all the directors or all the members of a
committee shall have the same effect as a unanimous vote, and
may be stated as such in any document filed with the director
under this Act.
(Source: P.A. 89-603, eff. 8-2-96.)
(205 ILCS 305/34) (from Ch. 17, par. 4435)

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Sec. 34. Duties of supervisory committee.
(1) The supervisory committee shall make or cause to be
made an annual internal audit of the books and affairs of the
credit union to determine that the credit union's accounting
records and reports are prepared promptly and accurately
reflect operations and results, that internal controls are
established and effectively maintained to safeguard the assets
of the credit union, and that the policies, procedures and
practices established by the board of directors and management
of the credit union are being properly administered. The
supervisory committee shall submit a report of that audit to
the board of directors and a summary of that report to the
members at the next annual meeting of the credit union. It
shall make or cause to be made such supplementary audits as it
deems necessary or as are required by the Secretary or by the
board of directors, and submit reports of these supplementary
audits to the Secretary or board of directors as applicable.
If the supervisory committee has not engaged a licensed
certified public accountant or licensed certified public
accounting firm to make the internal audit, the supervisory
committee or other officials of the credit union shall not
indicate or in any manner imply that such audit has been
performed by a licensed certified public accountant or
licensed certified public accounting firm or that the audit
represents the independent opinion of a licensed certified
public accountant or licensed certified public accounting

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firm. The supervisory committee must retain its tapes and
working papers of each internal audit for inspection by the
Department. The report of this audit must be made on a form
approved by the Secretary. A copy of the report must be
promptly delivered to the Secretary.
(2) The supervisory committee shall make or cause to be
made at least once each year a reasonable percentage
verification of members' share and loan accounts, consistent
with rules promulgated by the Secretary.
(3) (A) The supervisory committee of a credit union with
assets of $10,000,000 or more shall engage a licensed
certified public accountant or licensed certified public
accounting firm to perform an annual external independent
audit of the credit union's financial statements in accordance
with generally accepted auditing standards and the financial
statements shall be issued in accordance with accounting
principles generally accepted in the United States of America.
(B) The supervisory committee of a credit union with
assets of $5,000,000 or more, but less than $10,000,000, shall
engage a licensed certified public accountant or licensed
certified public accounting firm to perform on an annual
basis: (i) an agreed-upon procedures engagement under
attestation standards established by the American Institute of
Certified Public Accountants to minimally satisfy the
supervisory committee internal audit standards set forth in
subsection (1); or (ii) an external independent audit of the

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credit union's financial statements pursuant to the standards
set forth in paragraph (A) of subsection (3).
(C) Notwithstanding anything to the contrary in Section 6,
each credit union organized under this Act shall select the
annual period it desires to use for purposes of performing the
external audit, agreed-upon procedures report, or internal
audit described in this Section. The annual period may end on
the final day of any month. Irrespective of the annual period
selected, the credit union shall complete its external audit
report, agreed-upon procedures report, or internal audit
report and deliver copies to the Secretary no later than 120
days after the end of the annual period selected for which the
reports were prepared. The external independent audit report
or agreed-upon procedures report shall be completed and a copy
thereof delivered to the Secretary no later than 120 days
after the end of the calendar or fiscal year under audit or
fiscal period for which the agreed-upon procedures are
performed. A credit union or group of credit unions may obtain
an extension of the due date upon application to and receipt of
written approval from the Secretary.
(D) If the credit union engages a licensed certified
public accountant or licensed certified public accounting firm
to perform an annual external independent audit of the credit
union's financial statements pursuant to the standards in
paragraph (A) of subsection (3) or an annual agreed-upon
procedures engagement pursuant to the standards in paragraph

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(B) of subsection (3), then the annual internal audit
requirements of subsection (1) shall be deemed satisfied and
met in all respects.
(4) In determining the appropriate balance in the
allowance for loan losses account, a credit union may
determine its historical loss rate using a defined period of
time of less than 5 years, provided that:
(A) the methodology used to determine the defined
period of time is formally documented in the credit
union's policies and procedures and is appropriate to the
credit union's size, business strategy, and loan portfolio
characteristics and the economic environment of the areas
and employers served by the credit union;
(B) supporting documentation is maintained for the
technique used to develop the credit union loss rates,
including the period of time used to accumulate historical
loss data and the factors considered in establishing the
time frames; and
(C) the external auditor conducting the credit union's
financial statement audit has analyzed the methodology
employed by the credit union and concludes that the
financial statements, including the allowance for loan
losses, are fairly stated in all material respects in
accordance with U.S. Generally Accepted Accounting
Principles, as promulgated by the Financial Accounting
Standards Board.

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(5) A majority of the members of the supervisory committee
shall constitute a quorum.
(6) On an annual basis commencing January 1, 2015, the
members of the supervisory committee shall receive training
related to their statutory duties. Supervisory committee
members may receive the training through internal credit union
training, external training offered by the credit union's
retained auditors, trade associations, vendors, regulatory
agencies, or any other sources or on-the-job experience, or a
combination of those activities. The training may be received
through any medium, including, but not limited to,
conferences, workshops, audit closing meetings, seminars,
teleconferences, webinars, and other Internet-based delivery
channels.
(Source: P.A. 100-778, eff. 8-10-18; 101-81, eff. 7-12-19.)
(205 ILCS 305/51) (from Ch. 17, par. 4452)
Sec. 51. Other loan programs.
(1) Subject to such rules and regulations as the Secretary
may promulgate, a credit union may participate in loans to
credit union members jointly with other credit unions,
corporations, or financial institutions. An originating credit
union may originate loans only to its own members. A
participating credit union that is not the originating lender
may participate in loans made to its own members or to members
of another participating credit union. "Originating lender"

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means the participating credit union with which the member
contracts. A master participation agreement must be properly
executed, and the agreement must include provisions for
identifying, either through documents incorporated by
reference or directly in the agreement, the participation loan
or loans prior to their sale.
(2) Any credit union with assets of $500,000 or more may
loan to its members under scholarship programs which are
subject to a federal or state law providing 100% repayment
guarantee.
(3) A credit union may purchase the conditional sales
contracts, notes and similar instruments which evidence an
indebtedness of its members. In the management of its assets,
liabilities, and liquidity, a credit union may purchase the
conditional sales contracts, notes, and other similar
instruments that evidence the consumer indebtedness of the
members of another credit union. "Consumer indebtedness" means
indebtedness incurred for personal, family, or household
purposes.
(4) With approval of the board of directors, a credit
union may make loans, either on its own or jointly with other
credit unions, corporations or financial institutions, to
credit union organizations; provided, that the aggregate
amount of all such loans outstanding shall not at any time
exceed the greater of 6% 3% of the paid-in and unimpaired
capital and surplus of the credit union or the amount

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authorized for federal credit unions.
(5) With the approval of the board of directors, a credit
union may make loans, either on its own or jointly with other
credit unions, corporations, or financial institutions, to
community development financial institutions as defined in
regulations issued by the U.S. Department of the Treasury and
minority deposit institutions as defined by the National
Credit Union Administration. The aggregate amount of all such
loans outstanding shall not at any time exceed 5% of the
paid-in and unimpaired capital and surplus of the credit
union.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/57) (from Ch. 17, par. 4458)
Sec. 57. Group purchasing and marketing.
(a) A credit union may, consistent with rules and
regulations promulgated by the Secretary, enter into
cooperative marketing arrangements to facilitate its members'
voluntary purchase of such goods and services as are in the
interest of improving economic and social conditions of the
members.
(b) A credit union may create and use descriptive and
brand references to promote and market its identity, services,
and products to its members. In the case of a merger pursuant
to Section 63, the surviving credit union may identify the
merging credit union as a division, branch, unit, or other

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descriptive reference that ensures the members understand they
are dealing with one credit union rather than multiple credit
unions, as of the effective date of the merger.
(Source: P.A. 100-361, eff. 8-25-17.)
(205 ILCS 305/59) (from Ch. 17, par. 4460)
Sec. 59. Investment of funds.
(a) Funds not used in loans to members may be invested,
pursuant to subsection (7) of Section 30 of this Act, and
subject to Departmental rules and regulations:
(1) In securities, obligations or other instruments of
or issued by or fully guaranteed as to principal and
interest by the United States of America or any agency
thereof or in any trust or trusts established for
investing directly or collectively in the same;
(2) In obligations of any state of the United States,
the District of Columbia, the Commonwealth of Puerto Rico,
and the several territories organized by Congress, or any
political subdivision thereof; however, a credit union may
not invest more than 10% of its unimpaired capital and
surplus in the obligations of one issuer, exclusive of
general obligations of the issuer, and investments in
municipal securities must be limited to securities rated
in one of the 4 highest rating categories by a nationally
recognized statistical rating organization;
(3) In certificates of deposit or passbook type

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accounts issued by a state or national bank, mutual
savings bank or savings and loan association; provided
that such institutions have their accounts insured by the
Federal Deposit Insurance Corporation or the Federal
Savings and Loan Insurance Corporation; but provided,
further, that a credit union's investment in an account in
any one institution may exceed the insured limit on
accounts;
(4) In shares, classes of shares or share certificates
of other credit unions, including, but not limited to
corporate credit unions; provided that such credit unions
have their members' accounts insured by the NCUA or other
approved insurers, and that if the members' accounts are
so insured, a credit union's investment may exceed the
insured limit on accounts;
(5) In shares of a cooperative society organized under
the laws of this State or the laws of the United States in
the total amount not exceeding 10% of the unimpaired
capital and surplus of the credit union; provided that
such investment shall first be approved by the Department;
(6) In obligations of the State of Israel, or
obligations fully guaranteed by the State of Israel as to
payment of principal and interest;
(7) In shares, stocks or obligations of other
financial institutions in the total amount not exceeding
5% of the unimpaired capital and surplus of the credit

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union;
(8) In federal funds and bankers' acceptances;
(9) In shares or stocks of Credit Union Service
Organizations in the total amount not exceeding the
greater of 6% 3% of the unimpaired capital and surplus of
the credit union or the amount authorized for federal
credit unions;
(10) In corporate bonds identified as investment grade
by at least one nationally recognized statistical rating
organization, provided that:
(i) the board of directors has established a
written policy that addresses corporate bond
investment procedures and how the credit union will
manage credit risk, interest rate risk, liquidity
risk, and concentration risk; and
(ii) the credit union has documented in its
records that a credit analysis of a particular
investment and the issuing entity was conducted by the
credit union, a third party on behalf of the credit
union qualified by education or experience to assess
the risk characteristics of corporate bonds, or a
nationally recognized statistical rating agency before
purchasing the investment and the analysis is updated
at least annually for as long as it holds the
investment;
(11) To aid in the credit union's management of its

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assets, liabilities, and liquidity in the purchase of an
investment interest in a pool of loans, in whole or in part
and without regard to the membership of the borrowers,
from other depository institutions and financial type
institutions, including mortgage banks, finance companies,
insurance companies, and other loan sellers, subject to
such safety and soundness standards, limitations, and
qualifications as the Department may establish by rule or
guidance from time to time;
(12) To aid in the credit union's management of its
assets, liabilities, and liquidity by receiving funds from
another financial institution as evidenced by certificates
of deposit, share certificates, or other classes of shares
issued by the credit union to the financial institution;
and
(13) In the purchase and assumption of assets held by
other financial institutions, with approval of the
Secretary and subject to any safety and soundness
standards, limitations, and qualifications as the
Department may establish by rule or guidance from time to
time; and .
(14) In the shares, stocks, or obligations of
community development financial institutions as defined in
regulations issued by the U.S. Department of the Treasury
and minority deposit institutions as defined by the
National Credit Union Administration; the aggregate amount

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of all such investments shall not at any time exceed 5% of
the paid-in and unimpaired capital and surplus of the
credit union.
(b) As used in this Section:
"Political subdivision" includes, but is not limited to,
counties, townships, cities, villages, incorporated towns,
school districts, educational service regions, special road
districts, public water supply districts, fire protection
districts, drainage districts, levee districts, sewer
districts, housing authorities, park districts, and any
agency, corporation, or instrumentality of a state or its
political subdivisions, whether now or hereafter created and
whether herein specifically mentioned or not.
"Financial institution" includes any bank, savings bank,
savings and loan association, or credit union established
under the laws of the United States, this State, or any other
state.
(c) A credit union investing to fund an employee benefit
plan obligation is not subject to the investment limitations
of this Act and this Section and may purchase an investment
that would otherwise be impermissible if the investment is
directly related to the credit union's obligation under the
employee benefit plan and the credit union holds the
investment only for so long as it has an actual or potential
obligation under the employee benefit plan.
(d) If a credit union acquires loans from another

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financial institution or financial-type institution pursuant
to this Section, the credit union shall be authorized to
provide loan servicing and collection services in connection
with those loans.
(Source: P.A. 100-361, eff. 8-25-17; 100-778, eff. 8-10-18;
101-567, eff. 8-23-19.)
(205 ILCS 305/64.7)
Sec. 64.7. Network credit unions.
(a) Two or more credit unions merging pursuant to Section
63 of this Act may elect to request a network credit union
designation for the surviving credit union from the Secretary.
The request shall be set forth in the plan of merger and
certificate of merger executed by the credit unions and
submitted to the Secretary pursuant to subsection (4) of
Section 63. The Secretary's approval of a certificate of
merger containing a network credit union designation request
shall constitute approval of the use of the network
designation as a brand or other identifier of the surviving
credit union. If the surviving credit union desires to include
the network designation in its legal name, make any other
change to its legal name, or both, it shall proceed with an
amendment to the articles of incorporation and bylaws of the
surviving credit union pursuant to Section 4 of this Act.
(b) A network credit union is a cooperative business
structure comprised of 2 or more merging credit unions with a

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collective goal of efficiently serving their combined
membership and gaining economies of scale through common
vision, strategy and initiative. The merging credit unions
shall be identified as divisional credit unions, branches, or
units of the network credit union or by other descriptive
references that ensure the members understand they are dealing
with one credit union rather than multiple credit unions.
Descriptive and brand references may also be created and used
to promote the identity, services, and products of the network
credit union to its members.
(c) Each divisional credit union may have an advisory
board of directors and a chief management official to assist
in maintaining and leveraging its respective local identity
for the benefit of the surviving credit union. The divisional
credit union advisory boards shall be appointed by the network
credit union board of directors. Each divisional credit
union's advisory board of directors may appoint a divisional
credit union chief management official and may also appoint
one of its directors to serve on the network credit union's
nominating committee. A divisional credit union may determine
to identify its advisory board as a committee and its
divisional chief management official with a title it deems
reasonable and appropriate. The network credit union board of
directors shall require each advisory board member to sign a
confidentiality or non-disclosure agreement to ensure that
information concerning the credit union remains confidential.

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(d) The network credit union is the surviving legal entity
in the merger and supervision, examination, audit, reporting,
governance, and management shall be conducted or performed at
the network credit union level. All share insurance, safety
and soundness, and statutory and regulatory requirements and
limitations shall be evaluated at the network credit union
level.
(Source: P.A. 99-614, eff. 7-22-16; 100-361, eff. 8-25-17.)
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INDEX
Statutes amended in order of appearance